Power Supply in Package Chip Market Analysis

Power Supply in Package and Power Supply on Chip (Global, 2024)

Introduction

Power supply in package and power supply on chip are the two most important fields in the evolution of power supply systems. As the trend of miniaturization continues in all fields, such as consumer electronics, automobiles, and industrial automation, the integration of power supply components into a smaller size is becoming more and more important. This integration not only increases the efficiency of the system, but also contributes to better heat dissipation and lower electromagnetic interference. Also, with the continuous development of integrated circuits and package technology, it is possible to provide more and more flexible and more demanding power solutions. The growing trend of energy conservation and the pursuit of sustainable development has also been driving the development of power supply in package and power supply on chip technology. It has a very obvious advantage in terms of power density and stability. The power supply industry is still in the process of evolution. The power supply industry must have a good understanding of the market structure of power supply in package and power supply on chip, so as to grasp the opportunities and challenges of the new era.

PESTLE Analysis

Political

In 2024, government policies in many regions will continue to put more emphasis on energy conservation and the environment, which will have a direct impact on the power supply in package (PSiP) and power supply on chip (PSoC) markets. For example, the European Union's Eco-design Directive stipulates that, by 2025, all products of the 1,200 product categories will have to meet certain energy-saving standards. This will push manufacturers to adopt more energy-efficient power supply solutions and thus drive the market.

Economic

The market for semiconductors including PSiP and PSoC is expected to reach $600 billion by 2024. It is being driven by the expansion of research and development, and by a huge investment in production and research. Intel and TSMC will invest over $100 billion in the next ten years in the manufacture and research of semiconductors. The cost of raw materials such as silicon is expected to rise by 15 per cent in 2023. The price of silicon will also affect the cost of manufacture and the price of power supplies.

Social

Awareness of the need for energy conservation and its consequences for the environment is growing, and in a recent survey more than seventy per cent of consumers said they would prefer energy-efficient products. This change in the attitude of consumers is influencing the manufacturers of products in the POS and PSoC markets to prioritise energy-efficient solutions. Also, the rapid growth of smart devices, which are expected to reach 30 billion by 2025, will continue to drive the demand for compact and efficient power supply solutions which can be integrated into these devices.

Technological

The development of the power supply is a rapidly moving field, with the GaN and SiC technology making significant advances. In 2024, the use of GaN technology will increase by 25%, mainly because of its higher efficiency and smaller size compared to silicon-based solutions. Moreover, the integration of power management ICs into PSiP and PSoC will further improve performance and reduce the cost of the system, thereby increasing the attractiveness of these solutions.

Legal

In 2024, manufacturers of products for e-mobility and e-transport are obliged to comply with the international standard IEC 62368-1 for the safety of electrical and electronic equipment. The scope of the standard is extremely wide, and at the end of this year alone more than 500 million products are expected to be in compliance with it. If a company does not meet the requirements, it may face significant fines and difficulties in obtaining market access. Therefore, companies are investing in compliance with these standards, which means that they are investing in legal and compliance resources.

Environmental

The regulations are getting stricter, the world is getting more and more concerned about the environment, and the reduction of carbon dioxide emissions is becoming a major concern. In 2024, the United Nations set a target of reducing greenhouse gas emissions by forty percent in the year 2030. This has led to an increasing focus on the development of eco-friendly power solutions, and to the use of sustainable materials and production methods. Companies, for example, are now required to report their carbon footprint, and more than half of the major manufacturers of electric equipment have committed to zero emissions by 2050.

Porter's Five Forces

Threat of New Entrants

The entry barriers to the Power Supply in Package and Power Supply on Chip market are moderate because of the high level of technical knowledge and the high level of investment required. Although the market is dominated by the major players, new entrants are still possible, especially if they offer new, cost-effective solutions. However, the established brands and the technological knowledge of the established companies can pose a threat to new entrants.

Bargaining Power of Suppliers

The bargaining power of the suppliers in this market is relatively low. There are many suppliers of the components and materials needed for power supply solutions, which means that the competition is intense. The large number of suppliers also means that it is easy for the manufacturers to change suppliers, which limits the influence that a single supplier has on prices and terms.

Bargaining Power of Buyers

The buyers’ bargaining power in the market for power supplies in packages and power supplies on chips is high, because of the variety of choices and the increasing demand for custom solutions. As the buyers’ knowledge and sensitivity to price increase, they are able to negotiate better terms, which force the suppliers to improve quality and lower prices to retain their business.

Threat of Substitutes

The threat of substitutes in this market is moderate. There are several alternatives, such as power supply units or other ICs. However, the specific advantages of the package and chip power supply technology, such as space saving and high efficiency, limit the degree of substitution. Substitutes will only become a threat in the future if they are developed further.

Competitive Rivalry

Competition in the market for power supplies in a package and on a chip is high, driven by the presence of several key players and technological advancements. These companies are constantly innovating to differentiate their products and capture market share, which has led to aggressive marketing and price competition. The intense rivalry is likely to have a significant effect on the profit margins and the dynamics of the market.

SWOT Analysis

Strengths

• Compact design leading to space-saving solutions in electronic devices.
• Enhanced efficiency and performance due to integration of power management functions.
• Growing demand in consumer electronics, automotive, and industrial applications.

Weaknesses

• Higher initial development and manufacturing costs compared to traditional power supply solutions.
• Complexity in design and integration may lead to longer time-to-market.
• Limited scalability for high-power applications.

Opportunities

• Increasing adoption of IoT devices driving demand for miniaturized power solutions.
• Advancements in semiconductor technology enabling better performance and lower costs.
• Potential growth in renewable energy applications requiring efficient power management.

Threats

• Intense competition from traditional power supply manufacturers and emerging technologies.
• Rapid technological changes may render existing products obsolete.
• Supply chain disruptions affecting component availability and pricing.

Summary

The market for Power Supply in Package and Power Supply on Chip in 2024 is characterized by its compact design and increased efficiency, which makes it suitable for a variety of applications. However, this market is challenged by high initial costs and high design complexity. The development of the Internet of Things and the semiconductor industry offer a great opportunity for the market, but companies must overcome the fierce competition and the potential supply chain problems in order to achieve success.